W October 1, Write Your Own (WYO) Principal Coordinators and the National Flood Insurance Program (NFIP) Servicing Agent

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1 U.S. Department of Homeland Security 500 C St. SW Washington, D.C W October 1, 2014 MEMORANDUM FOR: Write Your Own (WYO) Principal Coordinators and the National Flood Insurance Program (NFIP) Servicing Agent FROM: SUBJECT: David L. Miller Associate Administrator Federal Insurance and Mitigation Administration April 1, 2015, Program Changes The purpose of this memorandum is to provide notification of the changes that the NFIP will implement effective April 1, Many of these changes result from implementation of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) and continued implementation of the Biggert-Waters Flood Insurance Reform Act of The changes will require modifications to the NFIP Flood Insurance Manual, Transaction Record Reporting and Processing (TRRP) Plan, and the Edit Specifications document. Highlights of the Program Changes effective April 1, 2015, include the following: Updated premium rates conforming to HFIAA premium rate caps; Premium increases for non-primary residences and Severe Repetitive Loss properties; New rate tables for substantially damaged/substantially improved structures; Increased Reserve Fund Assessments; New procedures for properties newly mapped into a Special Flood Hazard Area (replacing the Preferred Risk Policy (PRP) Eligibility Extension procedure); New HFIAA-mandated premium surcharge of $25 for policies covering primary residences and $250 for all other policies; Revised deductible amounts and new $10,000 deductible option for residential properties; New minimum deductibles for PRPs and Mortgage Portfolio Protection Program policies; and Requirement to identify legal address descriptions in the TRRP Plan. Please see the following attachments for details of these upcoming Program changes: Attachment A Summary of the NFIP April 2015 Program Changes

2 April 1, 2015, Program Changes October 1, 2014 Page 2 Attachment B Updated Rates, Deductible Factors, and Premium Tables Effective April 1, 2015 Attachment C HFIAA Surcharge Letter to Verify Primary Residence Status and Updated Application Form Attachment D TRRP Plan and Edit Specifications Changes Effective April 1, 2015 The next scheduled updates to the Community Rating System (CRS) Eligible Communities list will be effective May 1, 2015, as planned. The NFIP will provide the revised list under separate cover by February 1, Attachments cc: Vendors, IBHS, FIPNC, Government Technical Representative Suggested Routing: Accounting, Claims, Data Processing, Marketing, Underwriting

3 ATTACHMENT A SUMMARY OF THE NFIP APRIL 2015 PROGRAM CHANGES

4 National Flood Insurance Program April 1, 2015, Program Changes: A Summary This bulletin implements more of the required changes to the rate structure and some of the business practices with the NFIP as a result of the Homeowner Flood Insurance Affordability Act (HFIAA) and Biggert-Waters 12 (Biggert-Waters). Key changes in the bulletin include: Implementation of the first annual rate change that sets rates using rate increase limitations set by HFIAA, for individual premiums and rate classes: - Limiting premium increases for individual premiums to 18 percent premium; - Limiting increases for average rate classes to 15 percent; and - Mandatory increases for certain subsidized policyholders under Biggert-Waters and HFIAA. Increasing the Reserve Fund assessments required by Biggert-Waters. Implementation of the annual surcharges required by HFIAA. Guidance on substantially damaged and substantially improved structures and additional rating guidance on Pre-Flood Insurance Rate Map (FIRM) structures. Implementation of a new procedure for Properties Newly Mapped into the Special Flood Hazard Area and existing Preferred Risk Policy Eligibility Extension (PRP EE) policies. The premiums will be the same as the Preferred Risk Policy for the first year (calculated before fees and assessments) to comply with provisions of HFIAA. Reformulation of expense loading on premiums, reducing the expense load on the highest risk policies as an interim step while investigating expenses on policies as required by Biggert-Waters. The changes outlined in this bulletin will take effect on April 1, 2015, for new business and renewals beginning April 1, Premium Increases and Surcharges (Biggert-Waters Section and HFIAA Section 5) Premium increases effective April 1, 2015 will comply with HFIAA, which limits average annual increases in flood insurance premiums to 15 percent for each risk class, while also requiring the average increase for all Pre-FIRM subsidized policies be at least 5 percent. In addition, 18 percent is the most any individual premium may increase, with some limited exceptions that include, but are not limited to, misratings and increases in the amount of insurance coverage. When premium increases are evaluated for compliance with these caps, the Reserve Fund Assessment is included. Another important exception to the 18 percent limitation on premium increases is those groups of subsidized policies for which Biggert-Waters mandates annual premium increases of 25 percent. Premiums on subsidized policies are being increased 25 percent for policies covering nonprimary residences, Severe Repetitive Loss properties, and substantially-damaged / substantiallyimproved properties. The 25 percent premium increase on business properties will be implemented next year. 1

5 HFIAA also introduces a new mandatory surcharge on all new and renewed policies of either $25 for policies on primary residences or $250 for all other policies. The Congressionallymandated surcharge, the probation surcharge, and the Federal Policy Fee (FPF) are not considered premiums and, therefore, are not subject to the limitations described in the previous paragraph. As a result, the increase in the total amount charged a policyholder may exceed 18 percent in some cases. Premiums, including the Reserve Fund Assessment but excluding the FPF and the new HFIAAmandated surcharge, will increase an average of 9.9 percent for policies written or renewed on or after April 1, 2015 (see Attachment B for rate and premium tables). When the FPF and the new HFIAA-mandated surcharge are included, the total amount charged to the policyholder will increase an average of 19.8 percent. The average premium change by zone varies as described below, showing both the average premium increase including the Reserve Fund Assessment and the total increase including the FPF, the HFIAA surcharge, and any applicable probation surcharge charged to the policyholder. Pre-FIRM Subsidized Policies (AE Zones and VE Zones) - Primary Residences: The combined premium increase for all primary residence policies in these zones is 14 percent, with a total increase of 15 percent. - Non-Primary Residences: The combined premium increase for non-primary residence policies in these zones is 24 percent, with a total increase of 37 percent. V Zones (coastal high-velocity zones) Rate increases are being implemented again this year as a result of the Heinz Center s Erosion Zone Study, which clearly indicates that current rates significantly underestimate the increasing hazard from steadily eroding coastlines. - Post-FIRM V Zones: Premiums will increase 9 percent, with a total increase of 13 percent. A Zones (non-velocity zones, which are primarily riverine zones) - Post-FIRM A1-A30 and AE Zones: Premiums will increase 9 percent, with a total increase of 23 percent. - AO, AH, AOB, and AHB Zones (shallow flooding zones): Premiums will increase 10 percent, with a total increase of 23 percent. - Unnumbered A Zones (remote A Zones where elevations have not been determined): Premiums will increase 12 percent, with a total increase of 21 percent. - A99 Zones (i.e., flood protection systems still in the process of being constructed) and AR Zones: Premiums will increase 12 percent, with a total increase of 19 percent. X Zones (zones outside the Special Flood Hazard Area) - Standard-Rated Policies: Premiums will increase 11 percent, with a total increase of 20 percent. - Preferred Risk Policies (PRPs) (policies on buildings that are currently mapped outside the SFHA): Premiums will decrease an average of 2 percent, but overall the average amount charged these policyholders will increase 14 percent. - Policies for Properties Newly Mapped into the SFHA (includes the former PRP Eligibility Extension (PRP EE) policies): Premiums will decrease an average of 13 2

6 percent, but overall the average amount charged these policyholders will increase 7 percent. Non-Primary and Severe Repetitive Loss Properties (Biggert-Waters Section ): These properties will continue to receive annual 25 percent premium increases on a rate class basis, not an individual basis, until full-risk rates are achieved. A renewal of a policy on a Pre-FIRM, primary residence that is not an SRL property that changes to an SRL or a nonprimary residence status would see an increase greater than 25 percent. (Note that this would be characterized as a misrating if the classification were not changed.) Substantial Damage/Substantial Improvement (Biggert-Waters Section ): New rate tables are provided in the Rating and Condominium sections for Pre-FIRM structures that have been declared substantially damaged/substantially improved. Policies for these structures will receive a 25 percent annual premium rate increase until they reach full-risk rating. Reserve Fund (Biggert-Waters Section ): The Reserve Fund Assessment will increase to 15 percent for all policies except PRPs. The Reserve Fund Assessment for PRPs will be 10 percent. In order to comply with the 15 percent limitation on average annual increases, increases to the Reserve Fund Assessment must be phased in over time. Properties Newly Mapped into the SFHA (HFIAA Section 6): This category includes properties that were previously rated under the PRP EE. New premium tables for Properties Newly Mapped into the SFHA include a 15 percent Reserve Fund Assessment. The appropriate HFIAA Surcharge must be added for each policy. HFIAA Surcharges (HFIAA Section 8): Beginning April 1, 2015, a new annual premium surcharge must be collected for each policy as shown below: - $25 for Dwelling Form policies covering single-family primary residences or individual condominium units or apartments in non-condominium buildings used as a primary residence by the named insured. - $250 for policies covering non-residential properties or non-primary residences. - $250 for policies covering entire condominium buildings or non-condominium multifamily buildings. The insurer must validate primary residence eligibility before applying the $25 HFIAA surcharge (see Attachment C). Below are some specific guidelines for application of the surcharge: Family and Multi-Family Buildings: A 2-4-family building or a multi-family (other-residential) building classified as residential should be treated as the business of the owner, and policies covering the entire building should receive the $250 annual surcharge. - Residential Condominium Building Association Policies (RCBAPs): The surcharge amount for RCBAPs will be $ Contents-only and Condominium Unit Policies: The surcharge amount will be $25 for contents-only policies for primary residences and for policies covering primary residence residential condominium units or primary residence apartments in non- 3

7 condominium buildings under the Dwelling Form. The surcharge amount will be $250 for non-residential condominium units. - PRP: The insurer should add the appropriate surcharge to the PRP premium. - Properties Newly Mapped into the SFHA: The insurer should add the appropriate surcharge to the premium. - Other SFIP Products: The Group Flood Insurance Policy (GFIP) is the only SFIP product excluded from the surcharge, as the GFIP premium is a flat fee regulated by Title 44 of the CFR Part 61.17(b). The surcharge does apply to all other SFIPs, including those for buildings rated under the Emergency Program, Mortgage Portfolio Protection Program (MPPP), Provisional Rating, and Tentative Rating. - Premium Caps: The surcharge is not included in the premium when determining compliance with the premium increase caps of HFIAA Section 5 or Biggert-Waters Section Refund Procedures: The HFIAA surcharge will not be eligible for refunds due to cancellation or reduction of coverage. The Application Form has been revised to add the HFIAA surcharge into the calculation for the Total Amount Due (see Attachment C). Increased Optional Deductible (HFIAA Section 12): A new Congressionally created $10,000 deductible is available for residential properties. When selecting this new option, the same deductible option must apply to both building and contents coverage. Deductible Factors: Existing tables were modified to include the new $10,000 deductible for residential properties mandated by HFIAA to help make some policies more affordable. Federal Policy Fee: The FPF will remain $22 for PRPs and will increase to $45 for all other policies except RCBAPs. This $45 FPF also applies to those policies previously rated under the PRP EE (now rated under Properties Newly Mapped into the SFHA), as well as policies effective on or after April 1, 2015, covering properties that were newly mapped into the SFHA by a map revision that became effective on or after March 21, The FPFs for the RCBAP are provided below. - 1 unit $45 per policy units $135 per policy units $360 per policy units $720 per policy - 21or more units $1,800 per policy 2. Minimum Deductibles (Biggert-Waters Section ) Effective April 1, 2015, as required by Biggert-Waters, new minimum deductibles for PRP and MPPP policies will be $1,000 for both building and contents if the building coverage is less than or equal to $100,000 and $1,250 if building coverage is over $100,000, regardless of the insured building s construction date compared to the initial FIRM date. PRP and MPPP contents-only policies will have a $1,000 minimum deductible. 4

8 3. Property Newly Mapped into the SFHA (HFIAA Sections 4 and 6) Section 4 of HFIAA repeals Section 207 of Biggert-Waters and restores grandfathering. Section 6 of HFIAA mandates that following a map revision, a property newly mapped into the SFHA will receive a preferred risk premium the year following the map revision, after which the policy will transition to a full-risk rate in accordance with annual premium caps discussed above (assuming no change in coverage or Community Rating System status). For new policies effective on or after April 1, 2015, properties newly mapped into an SFHA by a revision to the FIRM that became effective on or after March 21, 2014, will be eligible for a preferred risk premium for the first year, after which they will transition to full-risk rates through average premium increases of 15 percent but not exceeding 18 percent per policy (excluding the HFIAA surcharge). The full-risk rates may be based on the grandfathered zone or BFE. Beginning at the first renewal, the policies must be rated using the tables established for Property Newly Mapped into the SFHA. FEMA will introduce a new Risk Rating Method of R in the Transaction Record Reporting and Processing (TRRP) Plan (see Attachment D) to identify these policies. 4. Increased Optional Deductibles (HFIAA Section 12) In accordance with HFIAA, FEMA is introducing a $10,000 deductible option for all residential property owners. If the property owner selects this option, the $10,000 deductible will apply to both building and contents coverage. Revised deductible factors tables (Table 8B in the Rating section and Table 7 in the Condominiums section) are provided in Attachment B. Insurers are required to inform applicants of the availability of this coverage option either on the Application Form or on a separate form, segregated from all unrelated information and other required disclosures. A statement must be included to explain the effect of a loss-deductible and that, in the event of an insured loss, the insured is responsible out-of-pocket for losses to the extent of the deductible selected. 5. Substantially Damaged/Substantially Improved Structures (HFIAA Section 15) Beginning April 1, 2015, policies for Pre-FIRM properties with substantially damaged/ substantially improved structures will be subject to annual 25-percent premium rate increases until they reach full-risk premiums. This represents a change from the previous policy of reclassifying a substantially damaged/substantially improved building as Post-FIRM and immediately requiring full-risk rates. If the full-risk premium is lower than the subsidized premium, the full-risk rating should be used. New rate tables (Table 2D in the Rating section and Tables 3B and 4C in the Condominiums section) are provided for Substantially Damaged/Substantially Improved buildings. The Construction Date field in the TRRP Plan will be changed to Original Construction Date. For rating purposes, if the building is Pre-FIRM, the Original Construction Date will always be used even if the building has been substantially improved. However, Post-FIRM buildings that have been substantially improved must use the substantial improvement date as the Original Construction Date. 5

9 6. Additional Rating Guidance for Pre-FIRM Buildings Full-risk rates should always be used for Pre-FIRM buildings with elevation information when the full-risk rate is lower than the appropriate Pre-FIRM subsidized rates. Pre-FIRM subsidized rates should be utilized for Pre-FIRM buildings when more favorable than a full-risk rate or when insufficient information is submitted to determine a full-risk rate. The guidance below can be used to determine which Pre-FIRM subsidized rate table to use when rating a building using Pre-FIRM subsidized rates. Table 2A Pre-FIRM Primary Residence: Use for primary residences, non-srl properties, and buildings that have not been substantially damaged or improved. (For RCBAPs, Table 3A or 4A in the Condominiums section should be used.) Table 2B Pre-FIRM Non-Primary Residence: Use for all non-primary residences unless they are SRL properties. If SRL, Table 2C should be used. Table 2C Pre-FIRM SRL: Table 2C should be used for all Pre-FIRM SRL properties. (For RCBAPs, Table 4B in the Condominiums section should be used.) Table 2D Pre-FIRM Substantially Damaged/Improved Buildings: Use for substantially damaged/improved buildings and primary residences. (For RCBAPs, use Table 3B or 4C in the Condominiums section.) If a non-primary residence has a substantially damaged/improved building and it is not an SRL property, Table 2B should be used. If a non-primary residence has a substantially damaged/improved building and it is an SRL property, Table 2C should be used. 7. Clarifications Regarding Property Addresses FEMA is adding a field in the TRRP Plan to identify legal addresses for a property location (e.g., lot, block, plat), as mapping information is difficult to validate for legal addresses. The value of L should be used to capture an address using this format for the Name or Descriptive Information Indicator. Insurers must identify such addresses and restrict their use to buildings under construction or rural buildings where a standard street address is unavailable. 6

10 ATTACHMENT B UPDATED RATES, DEDUCTIBLE FACTORS, AND PREMIUM TABLES EFFECTIVE APRIL 1, 2015

11 RATING This section contains information, including rate tables, required to accurately rate a National Flood Insurance Program (NFIP) flood insurance policy. Information and rates for the Preferred Risk Policy (PRP) and Residential Condominium Building Association Policy (RCBAP) are found in their respective sections. The detailed drawings, and accompanying text and tables, in the Lowest Floor Guide section are to be used as a guide for identifying the lowest floor for rating buildings. This guide will assist in developing the proper rate for the building. Examples of some rating situations are shown at the end of this section. I. AMOUNT OF INSURANCE AVAILABLE 1 REGULAR PROGRAM EMERGENCY Basic Additional Total BUILDING COVERAGE PROGRAM Insurance Limits Insurance Limits Insurance Limits Single-Family Dwelling $ 35,000 2 $ 60,000 $190,000 $250, Family Dwelling $ 35,000 2 $ 60,000 $190,000 $250,000 Other Residential $100,000 3 $175,000 $325,000 $500,000 Non-Residential $100,000 3 $175,000 $325,000 $500,000 CONTENTS COVERAGE Residential $ 10,000 $ 25,000 $ 75,000 $100,000 Non-Residential $100,000 $150,000 $350,000 $500,000 1 These limits apply to all single condominium units and all other buildings not in a condominium form of ownership, including cooperatives and timeshares. Refer to the Condominiums section of this manual for basic insurance limits and maximum amount of insurance available under the RCBAP. 2 In Alaska, Guam, Hawaii, and U.S. Virgin Islands, the amount available is $50, In Alaska, Guam, Hawaii, and U.S. Virgin Islands, the amount available is $150,000. II. RATE TABLES Rate tables are provided for the Emergency Program show annual rates per $100 of coverage. Table 6 and for the Regular Program according to Pre-FIRM provides tentative rates (for more information, see the subsidized premium rates, or Post-FIRM/full-risk Tentative Rates subsection in this section). See Table premium rates for each zone classification. Tables for Federal Policy Fee and Probation Surcharge. TABLE 1. EMERGENCY PROGRAM RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) BUILDING CONTENTS Residential Non-Residential RATE 1

12 TABLE 2A. REGULAR PROGRAM PRE-FIRM CONSTRUCTION RATES 1 ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) BUILDING TYPE CONTENTS LOCATION OCCUPANCY No Basement/Enclosure With Basement With Enclosure 3 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 4 Basement & Above 5 Enclosure & Above 6 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 4 FIRM ZONES A, AE, A1 A30, AO, AH, D 2 SINGLE FAMILY 2 4 FAMILY OTHER RESIDENTIAL NON-RESIDENTIAL Building Contents Building Contents Building Contents Building Contents.89 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /1.59 CONTENTS LOCATION BUILDING TYPE CONTENTS LOCATION BUILDING TYPE OCCUPANCY No Basement/Enclosure With Basement With Enclosure 3 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 4 Basement & Above 5 Enclosure & Above 6 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 4 OCCUPANCY No Basement/Enclosure With Basement With Enclosure 3 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 4 Basement & Above 5 Enclosure & Above 6 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 4 FIRM ZONES V, VE, V1 V30 SINGLE FAMILY 2 4 FAMILY OTHER RESIDENTIAL NON-RESIDENTIAL Building Contents Building Contents Building Contents Building Contents 1.16 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /11.56 FIRM ZONES A99, B, C, X SINGLE FAMILY 2 4 FAMILY OTHER RESIDENTIAL NON-RESIDENTIAL Building Contents Building Contents Building Contents Building Contents 1.00 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /.67 1 Pre-FIRM construction refers to a building that has a date of construction or substantial improvement date on or before 12/31/74, or before the effective date of the initial Flood Insurance Rate Map (FIRM), whichever is later. If the building is a non-primary residence located in an SFHA or Zone D, use Table 2B. 2 Pre-FIRM buildings may use Post-FIRM elevation rating if more favorable to the insured. However, when the lowest floor elevation is below the Base Flood Elevation (BFE), follow the Submit-for-Rate procedures for policy processing. 3 For an elevated building on a crawlspace with an attached garage without openings, use With Enclosure rates. 4 The definition of Manufactured (Mobile) Home includes travel trailers; see the Definitions section of this manual. 5 Includes subgrade crawlspace. 6 Includes crawlspace. RATE 2

13 TABLE 2B. REGULAR PROGRAM PRE-FIRM CONSTRUCTION RATES 1 NON-PRIMARY RESIDENCE 2 ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) CONTENTS LOCATION BUILDING TYPE CONTENTS LOCATION BUILDING TYPE CONTENTS LOCATION BUILDING TYPE OCCUPANCY No Basement/Enclosure With Basement With Enclosure 5 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 6 Basement & Above 7 Enclosure & Above 8 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 6 OCCUPANCY No Basement/Enclosure With Basement With Enclosure 5 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 6 Basement & Above 7 Enclosure & Above 8 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 6 OCCUPANCY No Basement/Enclosure With Basement With Enclosure 5 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 6 Basement & Above 7 Enclosure & Above 8 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 6 FIRM ZONES A, AE, A1 A30, AO, AH, D FAMILY OTHER RESIDENTIAL SINGLE FAMILY (CONDO UNIT) 4 (CONDO UNIT) 4 Building Contents Building Contents Building Contents 1.30 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /.27 FIRM ZONES V, VE, V1 V FAMILY OTHER RESIDENTIAL SINGLE FAMILY (CONDO UNIT) 4 (CONDO UNIT) 4 Building Contents Building Contents Building Contents 1.68 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /.65 FIRM ZONES A99, B, C, X SINGLE FAMILY 2 4 FAMILY (UNIT ONLY) OTHER RESIDENTIAL (UNIT ONLY) Building Contents Building Contents Building Contents 1.00 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /.16 1 Pre-FIRM construction refers to a building that has a date of construction or substantial improvement date on or before 12/31/74, or before the effective date of the initial FIRM, whichever is later. 2 For rating purposes only, FEMA defines a non-primary residence as a building that will not be lived in by an insured or an insured s spouse for more than 50% of the 365 days following the policy effective date. 3 Pre-FIRM buildings may use Post-FIRM elevation rating if more favorable to the insured. However, when the lowest floor elevation is below the BFE, follow the Submit-for-Rate procedures for policy processing. 4 Individually owned unit in the condominium form of ownership located within a multi-unit building. 5 For an elevated building on a crawlspace with an attached garage without openings, use With Enclosure rates. 6 The definition of Manufactured (Mobile) Home includes travel trailers; see the Definitions section of this manual. 7 Includes subgrade crawlspace. 8 Includes crawlspace. RATE 3

14 BUILDING TYPE CONTENTS LOCATION BUILDING TYPE CONTENTS LOCATION TABLE 2C. REGULAR PROGRAM PRE-FIRM CONSTRUCTION RATES 1 SEVERE REPETITIVE LOSS PROPERTIES 2 ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) FIRM ZONES A, AE, A1 A30, AO, AH, D 3 SINGLE FAMILY 2 4 FAMILY OCCUPANCY Building Contents Building Contents No Basement/Enclosure 1.03 / / /1.05 With Basement 1.10 / / /1.55 With Enclosure / / /1.86 Elevated on Crawlspace 1.03 / / /1.05 Non-Elevated with Subgrade Crawlspace 1.03 / / /1.05 Manufactured (Mobile) Home / /1.88 Basement & Above 6 Enclosure & Above 7 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home / / / / /.26 FIRM ZONES V, VE, V1 V30 SINGLE FAMILY 2 4 FAMILY OCCUPANCY Building Contents Building Contents No Basement/Enclosure 1.34 / / /2.63 With Basement 1.43 / / /3.92 With Enclosure / / /4.63 Elevated on Crawlspace 1.34 / / /2.63 Non-Elevated with Subgrade Crawlspace 1.34 / / /2.63 Manufactured (Mobile) Home / /4.49 Basement & Above 6 Enclosure & Above 7 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 5 OCCUPANCY BUILDING TYPE CONTENTS LOCATION No Basement/Enclosure With Basement With Enclosure 4 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 5 Basement & Above 6 Enclosure & Above 7 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home / / / / /.60 FIRM ZONES A99, B, C, X SINGLE FAMILY 2 4 FAMILY Building Contents Building Contents 1.00 / / / / / / / / / / / / / / / / / / / / / /.16 1 Pre-FIRM construction refers to a building that has a date of construction or substantial improvement date on or before 12/31/74, or before the effective date of the initial FIRM, whichever is later. 2 For additional guidance, refer to the Severe Repetitive Loss Properties section of this manual. 3 Pre-FIRM buildings may use Post-FIRM elevation rating if more favorable to the insured. However, when the lowest floor elevation is below the BFE, follow the Submit-for-Rate procedures for policy processing. 4 For an elevated building on a crawlspace with an attached garage without openings, use With Enclosure rates. 5 The definition of Manufactured (Mobile) Home includes travel trailers; see the Definitions section of this manual. 6 Includes subgrade crawlspace. 7 Includes crawlspace. RATE 4

15 BUILDING TYPE CONTENTS LOCATION BUILDING TYPE CONTENTS LOCATION BUILDING TYPE CONTENTS LOCATION OCCUPANCY No Basement/Enclosure With Basement With Enclosure 4 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 5 Basement & Above 6 Enclosure & Above 7 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 5 OCCUPANCY No Basement/Enclosure With Basement With Enclosure 4 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 5 Basement & Above 6 Enclosure & Above 7 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 5 OCCUPANCY No Basement/Enclosure With Basement With Enclosure 4 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 5 Basement & Above 6 Enclosure & Above 7 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 5 TABLE 2D. REGULAR PROGRAM PRE-FIRM CONSTRUCTION RATES 1 SUBSTANTIAL DAMAGE/SUBSTANTIAL IMPROVEMENT 2 ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) FIRM ZONES A, AE, A1 A30, AO, AH, D 3 SINGLE FAMILY 2 4 FAMILY OTHER RESIDENTIAL NON-RESIDENTIAL Building Contents Building Contents Building Contents Building Contents.97 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /1.73 FIRM ZONES V, VE, V1 V30 SINGLE FAMILY 2 4 FAMILY OTHER RESIDENTIAL NON-RESIDENTIAL Building Contents Building Contents Building Contents Building Contents 1.26 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /12.56 FIRM ZONES A99, B, C, X SINGLE FAMILY 2 4 FAMILY OTHER RESIDENTIAL NON-RESIDENTIAL Building Contents Building Contents Building Contents Building Contents 1.00 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /.56 1 Pre-FIRM construction refers to a building that has a date of construction or substantial improvement date on or before 12/31/74, or before the effective date of the initial FIRM, whichever is later. 2 For rating purposes only, FEMA defines a substantially damaged/substantially improved building as a building that has had any reconstruction, rehabilitation, addition, or other improvement, the cost of which equals or exceeds 50% of the market value of the building before the improvement. 3 Pre-FIRM buildings may use Post-FIRM elevation rating if more favorable to the insured. However, when the lowest floor elevation is below the BFE, follow the Submit-for-Rate procedures for policy processing. 4 For an elevated building on a crawlspace with an attached garage without openings, use With Enclosure rates. 5 The definition of Manufactured (Mobile) Home includes travel trailers; see the Definitions section of this manual. 6 Includes subgrade crawlspace. 7 Includes crawlspace / / /.67 RATE 5

16 TABLE 3A. REGULAR PROGRAM POST-FIRM CONSTRUCTION RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) CONTENTS LOCATION BUILDING TYPE CONTENTS LOCATION BUILDING TYPE OCCUPANCY No Basement/Enclosure With Basement With Enclosure 1 Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 2 Basement & Above 3 Enclosure & Above 4 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 2 OCCUPANCY No Basement/Enclosure With Basement With Enclosure Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home 2 Basement & Above 3 Enclosure & Above 4 Lowest Floor Only Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level More Than 1 Full Floor Manufactured (Mobile) Home 2 FIRM ZONES A99, B, C, X SINGLE FAMILY 2 4 FAMILY OTHER RESIDENTIAL NON-RESIDENTIAL Building Contents Building Contents Building Contents Building Contents 1.00 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /.67 FIRM ZONE D SINGLE FAMILY 2 4 FAMILY OTHER RESIDENTIAL NON-RESIDENTIAL Building Contents Building Contents Building Contents Building Contents 1.78 / / / / /.45 *** *** 1.78 / / /.73 *** ***.92 / / /.58 *** *** 1.78 / /.28 *** *** 1.04 / / /.12 *** *** 1.63 / /.45 *** *** 1.04 / / /.12 *** *** 1.63 / / /.92 *** *** 1.10 / / / /.43 FIRM ZONES AO, AH (No Basement/Enclosure/Crawlspace/Subgrade Crawlspace Buildings Only) 5 BUILDING CONTENTS OCCUPANCY 1 4 Family Other Res & Non-Res Residential Non-Residential With Certification of Compliance or Elevation Certificate 6.28 / / / /.13 Without Certification of Compliance or Elevation Certificate 7, / / / /.16 1 For an elevated building on a crawlspace with an attached garage without openings, use With Enclosure rates. 2 The definition of Manufactured (Mobile) Home includes travel trailers; see the Definitions section of this manual. 3 Includes subgrade crawlspace. 4 Includes crawlspace. 5 Zones AO, AH Buildings with Basement/Enclosure/Crawlspace/Subgrade Crawlspace: follow Submit-for-Rate procedures. Pre-FIRM buildings with basement/enclosure/crawlspace/subgrade crawlspace at or above the BFE or Base Flood Depth are to use the With Certification of Compliance or Elevation Certificate rates and would not have to follow Submit-for-Rate procedures. 6 With Certification of Compliance or Elevation Certificate rates are to be used when the Elevation Certificate shows that the lowest floor elevation used for rating is equal to or greater than the community s elevation requirement, or when there is a Letter of Compliance from the community. 7 Without Certification of Compliance or Elevation Certificate rates are to be used on Post-FIRM buildings when the Elevation Certificate shows that the lowest floor elevation is less than the community s elevation requirement. These rates may be used for Pre-FIRM buildings when more favorable to the insured than Pre-FIRM subsidized rates. 8 For transfers and renewals of existing business where there is no Letter of Compliance or Elevation Certificate in the company s file, these rates can continue to be used. Provisional or tentative rates are to be used for new business without an Elevation Certificate or Letter of Compliance. For new business effective on or after October 1, 2011, the provisions of footnote 7 apply. ***SUBMIT FOR RATING RATE 6

17 TABLE 3B. REGULAR PROGRAM POST-FIRM CONSTRUCTION RATES 1 ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) FIRM ZONES AE, A1 A30 BUILDING RATES 1 FLOOR No Basement/Enclosure/ Crawlspace 4, 5 MORE THAN 1 FLOOR No Basement/Enclosure/ Crawlspace 4, 5 MORE THAN 1 FLOOR With Basement/Enclosure/ Crawlspace 4, 5 MANUFACTURED (MOBILE) HOME 6 ELEVATION OF LOWEST FLOOR ABOVE OR BELOW THE BFE 2, Family Other Residential & Non- Residential 1 4 Family Other Residential & Non- Residential 1 4 Family Other Residential & Non- Residential Single Family Non- Residential / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /.17 *** *** -2 *** *** *** *** *** *** *** *** ELEVATION OF LOWEST FLOOR ABOVE OR BELOW THE BFE 2, 3 LOWEST FLOOR ONLY ABOVE GROUND LEVEL No Basement/Enclosure/ Crawlspace 4 FIRM ZONES AE, A1 A30 CONTENTS RATES LOWEST FLOOR ABOVE GROUND LEVEL & HIGHER FLOORS No Basement/Enclosure/ Crawlspace 4 MORE THAN 1 FLOOR With Basement/Enclosure/ Crawlspace 4 MANUFACTURED (MOBILE) HOME 6 Residential Non- Residential Residential Non- Residential Residential Non- Residential Single Family Non- Residential / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /.12 *** *** -2 *** *** *** *** *** *** *** *** FIRM ZONES AE, A1 A30 CONTENTS RATES ELEVATION OF LOWEST FLOOR ABOVE OR BELOW THE BFE 2 ABOVE GROUND LEVEL MORE THAN 1 FULL FLOOR Single Family 2 4 Family Other Residential Non-Residential / / / / / / / / / / / / / / / / / / / / /.12 1 Pre-FIRM elevated buildings with or without enclosure/crawlspace must use the No Basement/Enclosure/Crawlspace columns. Use the Lowest Floor Guide to determine the lowest floor elevation for rating. Unfinished partial enclosures below a Pre-FIRM building that are used solely for parking, storage, and building access and are located below the BFE are eligible for Special Rate Consideration. 2 If the Lowest Floor is -1 because of an attached garage and the building is described and rated as a single-family dwelling, see the Lowest Floor Determination subsection in the Lowest Floor Guide section of this manual or contact the insurer for rating guidance; rate may be lower. 3 If the lowest floor of a crawlspace or subgrade crawlspace is -1, use submit-for-rate procedures (Pre-FIRM or Post-FIRM). If the lowest floor of an enclosure below the elevated floor of a Post-FIRM building is -1, also use submit-for-rate procedures. 4 Includes subgrade crawlspace. 5 Use Submit-for-Rate procedures if there is an elevator below the BFE regardless of whether there is an enclosure or not. 6 The definition of Manufactured (Mobile) Home includes travel trailers; see the Definitions section of this manual. ***SUBMIT FOR RATING RATE 7

18 TABLE 3C. REGULAR PROGRAM POST-FIRM CONSTRUCTION RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) ELEVATION DIFFERENCE UNNUMBERED ZONE A WITHOUT BASEMENT/ENCLOSURE/CRAWLSPACE/SUBGRADE CRAWLSPACE 1, Family BUILDING RATES Occupancy CONTENTS RATES Occupancy Other Residential & Non-Residential Residential 3 Non-Residential 3 +5 or more.47 / / / / to / / / / / / / /.22 0 or below *** *** *** *** +2 or more.46 / / / /.13 0 to / / / / / / / /.36 TYPE OF ELEVATION CERTIFICATE No Base Flood Elevation 4 With Base Flood Elevation 5-2 or below *** *** *** *** No Elevation Certificate / / / /.96 No Elevation Certificate 1 Buildings with basement, enclosure, crawlspace, or subgrade crawlspace: follow Submit-for-Rate procedures. Unfinished partial enclosures below a Pre-FIRM building that are used solely for parking, storage, and building access and are located below the BFE are eligible for Special Rate Consideration. 2 Pre-FIRM buildings may use this table if the rates are more favorable to the insured. 3 For elevation-rated risks other than Single Family, when contents are located 1 floor or more above lowest floor used for rating use Table 3B, Contents Rates, Above Ground Level More Than 1 Full Floor. 4 Elevation difference is the measured distance between the highest adjacent grade next to the building and the lowest floor of the building. 5 Elevation difference is the measured distance between the BFE provided by the community or registered professional engineer, surveyor, or architect and the lowest floor of the building. 6 For policies with effective dates on or after October 1, 2011, the No Elevation Certificate rates apply only to renewals and transfers. Provisional or tentative rates are to be used for new business without an Elevation Certificate. ***SUBMIT FOR RATING RATE 8

19 TABLE 3D. REGULAR PROGRAM POST-FIRM CONSTRUCTION RATES 1 ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) 1 FLOOR No Basement/Enclosure/ Crawlspace 3, 4 FIRM ZONES 75 81, V1 V30, VE BUILDING RATES 2 MORE THAN 1 FLOOR No Basement/Enclosure/ Crawlspace 3, 4 MORE THAN 1 FLOOR With Basement/Enclosure/ Crawlspace 3, 4 MANUFACTURED (MOBILE) HOME 5 ELEVATION OF LOWEST FLOOR Other Other Other ABOVE OR Residential & Residential & Residential & Single Non- BELOW THE BFE 1 4 Family Non-Residential 1 4 Family Non-Residential 1 4 Family Non-Residential Family Residential / / / / / / / / / / / / / /5.09 *** *** -2 *** *** *** *** *** *** *** *** FIRM ZONES 75 81, V1 V30, VE CONTENTS RATES LOWEST FLOOR ONLY ABOVE GROUND LEVEL LOWEST FLOOR ABOVE GROUND LEVEL & HIGHER FLOORS MORE THAN 1 FLOOR No Basement/Enclosure/ No Basement/Enclosure/ With Basement/Enclosure/ MANUFACTURED ELEVATION OF Crawlspace LOWEST FLOOR Crawlspace 3 Crawlspace 3 (MOBILE) HOME 5 ABOVE OR BELOW THE BFE Residential Non- Residential Residential Non- Residential Residential Non- Residential Single Family Non- Residential / / / / / / / / / / / / / /1.64 *** *** -2 *** *** *** *** *** *** *** *** FIRM ZONES 75 81, V1 V30, VE CONTENTS RATES ELEVATION OF LOWEST FLOOR ABOVE GROUND LEVEL MORE THAN 1 FULL FLOOR ABOVE OR BELOW THE BFE Single Family 2 4 Family Other Residential Non-Residential / / / / / / / / /.25 1 Pre-FIRM elevated buildings with or without enclosure/crawlspace must use the No Basement/Enclosure/Crawlspace columns. Use the Lowest Floor Guide to determine the lowest floor elevation for rating. Unfinished partial enclosures below a Pre-FIRM building that are used solely for parking, storage, and building access and are located below the BFE are eligible for Special Rate Consideration. 2 Policies for 1975 through 1981 Post-FIRM and Pre-FIRM buildings in zones VE and V1 V30 will be allowed to use the Post- 81 V-Zone rate table if the rates are more favorable to the insured. See instructions in this section for V-Zone Optional Rating. 3 Includes subgrade crawlspace. 4 Use Submit-for-Rate procedures if there is an elevator below the BFE regardless of whether there is an enclosure or not. 5 The definition of Manufactured (Mobile) Home includes travel trailers; see the Definitions section of this manual. 6 These rates are to be used if the lowest floor of the building is at or above the BFE. 7 Use Submit-for-Rate procedures if the enclosure below the lowest elevated floor of an elevated building, which is used for rating, is 1 or more feet below the BFE. ***SUBMIT FOR RATING FIRM ZONES 75 81, UNNUMBERED V ZONE SUBMIT FOR RATING RATE 9

20 ELEVATION OF THE LOWEST FLOOR ABOVE OR BELOW BFE ADJUSTED FOR WAVE HEIGHT 2 TABLE 3E. REGULAR PROGRAM POST-FIRM CONSTRUCTION RATES ANNUAL RATES PER $100 OF COVERAGE Residential 1981 POST-FIRM V1 V30, VE ZONE RATES 1 CONTENTS Non-Residential ELEVATED BUILDINGS FREE OF OBSTRUCTION 3 Replacement Cost Ratio.75 or More 4 BUILDING Replacement Cost Ratio.50 to.74 4 Replacement Cost Ratio Under or more or below *** *** *** *** *** 1 Policies for 1975 through 1981 Post-FIRM and Pre-FIRM buildings in zones VE and V1 V30 will be allowed to use the Post- 81 V-Zone rate table if the rates are more favorable to the insured. See instructions in this section for V-Zone Optional Rating. 2 Wave height adjustment is not required in those cases where the FIRM indicates that the map includes wave height. 3 Free of Obstruction The space below the lowest elevated floor must be completely free of obstructions or any attachment to the building, or may have: (1) Insect screening, provided that no additional supports are required for the screening; or (2) Wooden or plastic lattice with at least 40% of its area open and made of material no thicker than ½ inch; or (3) Wooden or plastic slats or shutters with at least 40% of their area open and made of material no thicker than 1 inch. (4) One solid breakaway wall or a garage door, with the remaining sides of the enclosure constructed of insect screening, wooden or plastic lattice, slats, or shutters. Any of these systems must be designed and installed to collapse under stress without jeopardizing the structural support of the building, so that the impact on the building of abnormally high tides or wind-driven water is minimized. Any machinery or equipment below the lowest elevated floor must be at or above the BFE. 4 These percentages represent building replacement cost ratios, which are determined by dividing the amount of building coverage being purchased through the NFIP by the replacement cost. See the Replacement Cost Ratio subsection in this section for more details. NOTE: Use Submit-for-Rate procedures if there is an elevator below the BFE enclosed with lattice, slats, or shutters (including louvers). ***SUBMIT FOR RATING 1981 POST-FIRM V1 V30, VE ZONE Non-Elevated Buildings SUBMIT FOR RATING 1981 POST-FIRM UNNUMBERED V ZONE SUBMIT FOR RATING RATE 10